Getting a used car dealer license in Washington

In Washington, used-car dealers are licensed by Washington DOL vehicle dealer license, applied for through Department of Revenue Business Licensing Service (BLS).

Before your first retail sale you’ll need a $30,000 surety bond, a 8-hour pre-licensing course and a business location that meets the state’s rules.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked · details re-checked against official sources

At a glance

Issued by
Washington DOL vehicle dealer license, applied for through Department of Revenue Business Licensing Service (BLS) dol.wa.gov (source, opens in a new tab)
Surety bond
$30,000 surety bond; applicant and surety must sign with matching business names. dol.wa.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Pre-licensing course
8-hour used-dealer training; approved providers include WSIADA and Independent Dealers Education Association. dor.wa.gov (source, opens in a new tab)
Official fees
Dealer license $975; original plate $50.75. BLS initial processing fee varies; trade name $5 if needed. dol.wa.gov (source, opens in a new tab)
Renewal
Annual license; renewal $325, plate renewal $38.75, BLS renewal processing $10. Used-dealer CE 5 hours. dol.wa.gov (source, opens in a new tab)
Site inspection
Dealer investigator inspection after submission, before issuance, per agency application instructions. dol.wa.gov (source, opens in a new tab)

Step by step

  1. Know how you apply

    Washington's vehicle dealer license is issued by the Department of Licensing (DOL), but you apply through the Department of Revenue's Business Licensing Service (BLS). New wholesale-only licenses aren't available, and vessel, manufactured-home and miscellaneous vehicle endorsements are different. dol.wa.gov › get-your-license-vehicle-dealers (source, opens in a new tab) dor.wa.gov › vehicle-and-vessel-dealer (source, opens in a new tab)

  2. Take the 8-hour training

    Complete 8 hours of used-dealer training from an approved provider, such as WSIADA or the Independent Dealers Education Association. dor.wa.gov › vehicle-and-vessel-dealer (source, opens in a new tab) dol.wa.gov › get-your-license-vehicle-dealers (source, opens in a new tab)

  3. Find commercial premises

    The business has to be on commercial property with an enclosed building and an area for books, records and files, meet commercial zoning and building rules, and be under a lease of at least one year. Put up a permanent sign showing the business name and type of business. dol.wa.gov › get-your-license-vehicle-dealers (source, opens in a new tab) dor.wa.gov › vehicle-and-vessel-dealer (source, opens in a new tab)

  4. Plan for staffed hours

    You must be open from 10 a.m. to 4 p.m., 5 days a week. Paying for a compliant site while staffing those hours is the hard part. dol.wa.gov › get-your-license-vehicle-dealers (source, opens in a new tab) dor.wa.gov › vehicle-and-vessel-dealer (source, opens in a new tab)

  5. Get the $30,000 bond

    The applicant and the surety both sign, and the business names must match exactly. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. dol.wa.gov › get-your-license-vehicle-dealers (source, opens in a new tab) dor.wa.gov › vehicle-and-vessel-dealer (source, opens in a new tab)

  6. Gather the documents

    Business registration, a financial (source-of-funds) statement, criminal-history statements and the lease or deed. dol.wa.gov › get-your-license-vehicle-dealers (source, opens in a new tab) dor.wa.gov › vehicle-and-vessel-dealer (source, opens in a new tab)

  7. Apply through BLS

    File the BLS Business License Application with the Vehicle Dealer/Manufacturer Addendum (DLR 430038) and the bond, financial and personal statements. The dealer license is $975 and an original plate is $50.75, plus a BLS processing fee and $5 for a trade name if you use one. dol.wa.gov › get-your-license-vehicle-dealers (source, opens in a new tab) dor.wa.gov › vehicle-and-vessel-dealer (source, opens in a new tab)

  8. Pass the investigator's inspection

    A dealer investigator inspects the site after you submit and before the license is issued. dol.wa.gov › download (source, opens in a new tab)

  9. Keep it current

    The license renews every year: $325, plus $38.75 per plate and a $10 BLS processing fee. Used dealers need 5 hours of continuing education. dol.wa.gov › fees-vehicle-and-boat-dealers (source, opens in a new tab) dol.wa.gov › renew-or-update-your-license-vehicle-and-boat-dealers (source, opens in a new tab)

The location

Display lot
Commercial-property premises. dol.wa.gov (source, opens in a new tab)
Office
A commercial property with an enclosed building and an area for books, records and files. Open from 10 a.m. to 4 p.m., 5 days a week. dol.wa.gov (source, opens in a new tab)
Sign
Permanent sign showing business name and business type. dol.wa.gov (source, opens in a new tab)
Zoning and home-based lots
Commercial zoning/building compliance; lease at least one year. dol.wa.gov (source, opens in a new tab)

Before you apply

Entity/business registration, financial/source-of-funds statement, criminal-history statements and lease/deed. dol.wa.gov (source, opens in a new tab)

Forms

DLR 430038 Vehicle Dealer/Manufacturer Addendum; BLS Business License Application; bond, financial and personal/criminal statements. dol.wa.gov (source, opens in a new tab)

Get the current versions from dol.wa.gov; we don’t host copies.

Not the license you’re after?

Vessel, manufactured-home and miscellaneous vehicle endorsements differ. New wholesale-only licenses are unavailable. dor.wa.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: funding a compliant commercial site while committing to regular staffed business hours.

Easy mistakes:

Questions

How much does a Washington dealer license cost?

$975 for the license and $50.75 for an original plate, plus a BLS processing fee and $5 for a trade name if needed. The premium on the $30,000 bond, the training and the commercial site cost more. dol.wa.gov › fees-vehicle-and-boat-dealers (source, opens in a new tab) dol.wa.gov › get-your-license-vehicle-dealers (source, opens in a new tab)

What hours do I have to be open?

10 a.m. to 4 p.m., 5 days a week. dol.wa.gov › get-your-license-vehicle-dealers (source, opens in a new tab)

Can I run a dealership from home in Washington?

No. The business has to be on commercial property with an enclosed building and meet commercial zoning. dol.wa.gov › get-your-license-vehicle-dealers (source, opens in a new tab) dor.wa.gov › vehicle-and-vessel-dealer (source, opens in a new tab)

Sources

Not affiliated with the Washington Department of Licensing. Not legal advice. Requirements change; always confirm with the state.